Question

What is the pricing strategy of the heinz ketup and justify why the company is using that particular pricing strategy?

Answer 1

Heinz is a company that produces branded food products. It has many products but mainly highlighted for ketup. This company occupied first and second position in more 50 countries in the world by producing taste and healthy food items.

Besed on the product and market conditions,it applies strategy and it could use different strategies like low pricing strategy, skimming and price discrimination.

For it's ketup product, it uses penetration or low price strategy because the main objective to use this strategy is to create some positive impression in customer's mind.

Probably, this is first company which introduce this kind of product, when this company introduced this product, this ketup not available in restaurants and people didn't have any awareness of this product.

So to attract customers, this company applied this strategy and it used advertising for attracting customers.

With using Group 57 ,it supplied this product to it's customers and this team create some awareness about this product.

So to avoid competition and to attract customers, this company used low pricing strategy or penetration.